QM · rank #8 · 2026-09-08
PACS
NYSE · $6.73B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +334.83% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +27.9% |
| Profit margin Net profit margin, trailing 12 months. | +4.9% |
| Market cap (USD) Size filter: > $500M required. | $6.73B |
| Anchor (recent) Close on 2026-08-07 | $48.44 |
| Anchor (far) Close on 2025-08-08 | $11.14 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
PACS Group operates ~316 skilled nursing and assisted living facilities across 17 states, serving 30,000+ patients daily in the post-acute and senior care segment.
Rationale
Strong 12-1 momentum (3.35) is reinforced by concrete fundamental delivery — 29% revenue growth in FY2025, 184% net income growth in Q1 2026, and consistent adjusted EPS beats — making the quality-momentum pairing credible rather than sentiment-only.
Material risks
- 1California WQIP reimbursement dependency is a concentrated earnings risk — Q1 2026 EBITDA included ~$16.3M of WQIP benefit, and any rate cut or program restructuring would directly impair the earnings trajectory underpinning both the ROE (0.28) and momentum signals.
- 2Labor cost inflation and staffing shortages in skilled nursing are structural margin headwinds that could compress the 4.85% profit margin rapidly, given the labor-intensive, multi-state footprint with limited pricing power outside government reimbursement schedules.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.